Explanation
BACKGROUND:
This legislation will allow the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the rehabilitation of Pheasant Run apartments, which will ultimately be funded with $5,000,000.00 from future Affordable Housing Bond funds. Once funds become available, an ordinance will be brought to Council to authorize a grant agreement. Columbus Housing Partnership Inc. will enter into a grant agreement with the city for the bond funds as a pass-through entity. Columbus Housing Partnership Inc. is the majority ownership entity of Pheasant Run Housing Rehab, Inc., the managing members of the pass-through entity, Pheasant Run Homes Rehab LLC.
Pheasant run is a 136-unit apartment complex for families on the western edge of Fairfield County within the City of Columbus. The property consists of 25, two-story residential buildings on a 13.98 acre site. The property was developed between 1999 and 2000 by Homeport (Columbus Housing Partnerships Inc.) and financed by Low Income Housing Tax Credits (LIHTC), the property has not been extensively renovated since it was first built. Pheasant Run offers a mix of housing types, including two, three, and four-bedroom apartments.
Pheasant Run’s rehab will include improvements to buildings that will include siding, windows, and exterior doors as well as renovations on the insides of the units. There will also be replacements of plumbing and electrical systems, furnaces, and hot water heaters. The improvements will also be made to the community building, playground, and other site improvements. Reconfigurations of some of the apartment’s floor plans to add accessible apartments and comply with current Section 504 regulations and the Ohio Housing Finance Agency’s (OHFA) design standards will take place. Community Housing Partnership Inc. aka Homeport is the majority general partner in the property’s current ownership structure. Homeport will be the sole developer of the property’s rehab and remain the majority owner of the general partner.
Community Housing Network Inc. (CHN) will be the minority general partner for tax compliance purposes. Homeport applied to the Ohio Housing Finance Agency for federal 4% Low Income Housing Tax Credits (LIHTC) and a soft loan through OHFA’s Housing Development Assistance Program (HDAP) and was awarded both. The project will be financed by LIHTC equity, a permanent loan, seller loan, new City bond funds, new OHFA HDAP, a resubordinated loan via the original HOME Funds used for the development, and deferred developer fee.
As part of the renovation, Homeport will place a new 30-year affordability covenant on the property, restricting units to households whose annual income is at or below 60% of Area Median Income. The property’s current affordability covenant is scheduled to expire in April 2030. This will preserve an important asset of affordable housing in Columbus.
FISCAL IMPACT: No funding is needed.
CONTRACT COMPLIANCE: the vendor number is 004842 and expires March 5, 2028.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the Pheasant Run apartment community. ($0.00)
Body
WHEREAS, the Director of Development seeks to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the Pheasant Run apartment community; and
WHEREAS, the HDA would memorialize the City’s desired commitment to the project, pending City Council approval and future availability of funds; and
WHEREAS, the Department of Development wishes to support this project by contributing $5,000,000.00 of bond funds upon availability from the Affordable Housing Bond funds; and
WHEREAS, this legislation would authorize the Director of Development to first execute the HDA and pending the availability of funding from the Affordable Housing Bond the department will seek City Council’s approval to enter into a grant agreement; and
WHEREAS, it is necessary in the usual daily operation of the Department of Development to authorize the Director to enter into a Housing Development Agreement with Columbus Housing Partnership Inc., in order to provide evidence of city funding; the City’s funding commitment is critical for the closing to proceed; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter into a Housing Development Agreement with Columbus Housing Partnership Inc., in support of the rehabilitation of Pheasant Run apartments, an affordable housing community; and
SECTION 2. That this ordinance shall take and be in force from and after the earliest period allowed by law.